AUD/USD Eyes Key February Trend Line as EUR/AUD Prolongs Reversal

Talking Points – AUD/USD, EUR/AUD, Head and Shoulders, Evening Star

  • AUD/USD prices soared amidst bullish signals, Aussie eyes the defining February trend line
  • EUR/AUD prices depreciated as expected after a couple of notable bearish reversal signals
  • Euro may keep losing ground to AUD after similar bearish signal on EUR/AUD weekly chart

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AUD/USD Technical Analysis Outlook: Bullish

Last week, we offered a neutral technical outlook for AUD/USD prices as we awaited further closes above a near-term descending resistance line from late August. Not only did we get that, but an inverse head and shoulders bullish reversal pattern formed in the aftermath. The combination of these two events have now changed the technical forecast for AUD/USD to bullish.

With that in mind, taking the distance between the head and the neckline of the candlestick formation would have AUD/USD climbing to the descending trend line from February. This area

Article source: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2018/09/21/AUDUSD-Eyes-Key-February-Trend-Line-as-EURAUD-Prolongs-Reversal.html